Coal gasification can help cut dependence on imports: G Kishan Reddy

New Delhi: Coal minister G Kishan Reddy on Thursday said coal gasification can significantly reduce India's dependence on imported methanol, ammonia, fertilisers and other critical chemicals, helping shield farmers, industries and consumers from global price volatility and trade disruptions. Speaking at a roadshow on the scheme to promote surface coal gasification projects, Reddy urged companies to set up coal gasification plants, citing assured coal linkages and multiple government initiatives to support the sector.

The government recently approved an additional ₹37,500 crore financial support package for coal gasification projects. In 2024, it launched a ₹8,500 crore incentive scheme under which eight projects have received approval.

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Coal secretary Vikram Dev Dutt said the ministry may issue a draft request for proposals by next week for stakeholder consultations, allowing the scheme to be rolled out by the end of June or the first week of July. The ministry will hold two more roadshows in Hyderabad and Mumbai in the first two weeks of June.

Dutt said there would be no offtake guarantee under the scheme for now and companies would need to factor in market dynamics while developing products.

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India's coal has unique characteristics, particularly its high ash content, making technology selection critical to align with feedstock quality, project economics and downstream products.